Bitcoin is Quite Bullish Despite Selloff, It Could Attain $11k

News / 16.02.2020

The price of BTC/USD pair retraced lower sharply from the barrier at $10.5k. Nevertheless, the price remains over the major $9.8k support and it may soon experience another rally.

In the previous week, the pair sustained a buying sentiment over the $10.3k zone. Its rally was extended towards $10.5k and was able to establish a level over the 100 SMA.

It eventually attained a fresh 2020 high at $10,507 prior to the beginning of a downside retracement. It appears that the pair attempted to surge past $10.5k, but the buyers could not make it happen.

Hence, the pair declined under $10.4k and $10.3k, such that it spiked beneath the support zone at $10k. Nevertheless, a look at the 4-hour chart of the pair revealed that it secured a powerful support close to $9.8k together with the 100 SMA.

The pair was able to form a swing low close to $9,764 and it is now experiencing an upsurge. In addition, a major bullish trend line is being formed with support close to $9.8k on the same chart.

A look the upside shows the first barrier is close to $10,140. Hence, if the price surges past $10,140 and $10.2k, it may pave the way for a bigger upside move ahead. An upsurge could make the buyers focus on a break over $10.5k and a visit to $11k zone.

A look at the downside shows that the pair is supported at $9.8k support and the 100 SMA is the key. The occurrence of a daily close beneath the support at $9.8k could make the pair to strive over the $9.5k support.

If the pair returns to the downside, there is likelihood of more downside retracement towards the $9k support zone.

Featured image courtesy of Shutterstock. Source: Cryptopress.

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Debasish Das is from India, an engineering graduate and holds a postgraduate degree in management. He has 10 years of experience in the financial sector, having worked for one of the biggest MNC banking groups in the country. Currently he has business in e-commerce, insurance and consultancy. As an avid blockchain and cryptocurrency enthusiasts he believes in investing in the future of technology, and feels this is going to make the world a single marketplace and also give the power from centralized banks and governments back to people.